Bybit and OKX Named in SEC Advisory—Is a Ban on Unlicensed Exchanges Looming in the Philippines?

The Philippines' Securities and Exchange Commission has flagged ten cryptocurrency exchanges, including prominent platforms like Bybit and OKX, for operating without proper registration. With new regulations in place, the SEC warns of potential enforcement actions against these unlicensed entities, emphasizing the risks for Filipino investors.

Key Takeaways

The Philippines' SEC has named ten crypto exchanges for failing to register under new regulations.
Unlicensed exchanges pose significant risks to investors, including fraud and market manipulation.
The SEC may take strong enforcement actions, reminiscent of previous actions against Binance.
The new regulatory framework requires all crypto asset service providers in the Philippines to comply with strict registration and operational standards.

Bybit, OKX named in SEC advisory—Is the Philippines preparing to ban unlicensed exchanges?

Unlicensed Exchanges Face SEC Scrutiny

In a recent advisory released on August 4, the Securities and Exchange Commission (SEC) of the Philippines highlighted ten cryptocurrency exchanges, such as Bybit and OKX, for operating without the necessary registrations. The advisory warns that these platforms might face serious enforcement actions under the newly established regulatory framework for cryptocurrency in the country.

The advisory explicitly lists the exchanges currently accessible to Filipino users, including OKX, Bybit, MEXC, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex, and Kraken. The SEC observed that many of these platforms continue to engage in aggressive marketing targeting local users, even though they lack the required licenses or registration.

While the SEC named ten notable exchanges, it clarified that the advisory does not constitute a complete list. Any entity offering crypto asset services to users in the Philippines without the appropriate registration is potentially operating illegally according to local laws.

Risks of Operating Without Regulation

According to the SEC, the unauthorized operations of these exchanges expose Filipino investors to several risks, including the potential total loss of funds, fraud, market manipulation, and identity theft. Without appropriate regulatory oversight, users have limited legal recourse if a loss occurs or if there is misconduct.

The SEC also raised concerns that unregistered platforms could be exploited for money laundering or financing terrorism. As these exchanges are not recognized as licensed Virtual Asset Service Providers, they do not have to adhere to the Anti-Money Laundering Act provisions that apply to registered entities in the Philippines.

Potential Enforcement Actions

Although the SEC has not explicitly issued a ban on these ten exchanges, the language of the advisory indicates that stringent enforcement measures could be on the horizon. The Commission has the authority to initiate a variety of enforcement actions against violations.

Such actions may involve cease and desist orders, criminal complaints, blocking access to websites and mobile applications, and collaboration with global tech platforms like Google, Apple, Meta, and TikTok to eliminate unauthorized crypto promotions aimed at Filipino users.

Lessons from Binance's Case

These warnings are not mere threats. The SEC has already taken similar actions against Binance, the world’s largest cryptocurrency exchange. In late 2023, the SEC determined Binance was offering unregistered securities and functioning as an unlicensed broker. They granted users a 90-day window to exit the platform. By March 2024, access to Binance’s website was blocked by the National Telecommunications Commission.

The response to Binance’s situation may set a precedent for how the SEC will handle the other platforms mentioned in this advisory. Though the SEC refrains from outright using the term "ban," the consequences faced by Binance suggest that failing to comply may lead to similar outcomes for other unlicensed exchanges.

Compliance Deadlines

The SEC has not announced a specific deadline for compliance but has emphasized that the regulations under the Crypto Asset Service Provider (CASP) framework have been effective since July 5, 2025. Issued earlier this year under SEC Memorandum Circular Nos. 4 and 5, Series of 2025, these regulations require all crypto-asset service providers operating in the Philippines to adhere to registration, disclosure, and operational standards starting from that date.

Under the new rules, CASPs must register as local corporations with a minimum capital of ₱100 million (approximately USD 1.8 million), maintain a physical presence in the country, and provide thorough documentation related to their digital asset services and business operations.

Any entity that continues to operate without proper registration after July 5 is in direct violation of Philippine securities laws and may face immediate enforcement actions.